What will it take to get started in the game industry?

I'm currently being stuck in a quite tricky situation.
Me, just like several thousand of gamers across the globe, is dreaming about a career in the game development business.
The problem is that I'm located in Sweden, and there's not that many development studios available that's hiring staff on a regular basis, so the competition is strong amongst the students.

You see, I'm studying game-design at university level, currently taking courses in concept art, QA, design, 3D tools and more.
I've played games with a passion since 1991, and I've always dreamed about someday being part of a development crew, but seeing all those talented students
around me really makes my heart sink to the bottom... Why would anyone look at me? What can I ever do in order to get recognition?
 
I guess this is just one of those days where I just can't gather enough motivation to see the bright future...
Well, I guess I should turn in those last QA assignments... Just like those twenty other students in my class will do this week, all of them with the same hopes and dreams as myself...

I'm currently being stuck in a quite tricky situation.
Me, just like several thousand of gamers across the globe, is dreaming about a career in the game development business.
The problem is that I'm located in Sweden, and there's not that many development studios available that's hiring staff on a regular basis, so the competition is strong amongst the students.

You see, I'm studying game-design at university level, currently taking courses in concept art, QA, design, 3D tools and more.
I've played games with a passion since 1991, and I've always dreamed about someday being part of a development crew, but seeing all those talented students
around me really makes my heart sink to the bottom... Why would anyone look at me? What can I ever do in order to get recognition?
 
I guess this is just one of those days where I just can't gather enough motivation to see the bright future...
Well, I guess I should turn in those last QA assignments... Just like those twenty other students in my class will do this week, all of them with the same hopes and dreams as myself...

Get into a mod development team and release a high quality mod. I've heard stories of a fair few people on ModDB getting jobs through mods. If you can't find one in your local area. Get an idea written down, do some concept art and some models and then upload it all to moddb, and look for people in your local area.
 
I really only know about concept art, but you can do freelance art online which will get you payed and begin to build up your portfolio. This could also be a way in.

Remember that no matter what you're good at, going into a University will immediately showcase how much better other people are at it than you.  Unless you're a genius, this will always be the case. 
 
As for getting a job in game development...well, it's not as hard to get into as say game journalism.  Just keep going to school and get your degree, and focus on what you have to offer rather than what others do more-so than you.

After you graduate if you and your classmates haven't found a job in a compnay you can start a studio together. Make a couple of indie darlings and then get bought by EA to make Madden sequels.